Pfizer beats estimates, but branded drugs disappoint

Tue Aug 2, 2016 12:36pm EDT
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By Ransdell Pierson

(Reuters) - Pfizer Inc (PFE.N: Quote) reported better-than-expected quarterly results, driven by lower taxes and sales of generic medicines, but revenue from its branded patent-protected medicines brought disappointment.

The largest U.S. drugmaker did not offer any hints on whether it plans to split into two separate companies, a long-mulled potential decision that has kept investors in suspense.

Pfizer, whose shares fell 2.3 percent in morning trading, said second quarter revenue rose 11 percent to $13.15 billion, topping the average analyst estimate of $13.01 billion.

Sales of generic medicines rose 16 percent to $6.04 billion, helped by Pfizer's $16 billion purchase last year of generic hospital products company Hospira.

Although generics beat expectations, BMO Capital Markets analyst Alex Arfaei said sales of Hospira products, at $1.14 billion, were 7 percent below his forecast, and suggested "limited revenue synergies" from that acquisition.

Sales of Pfizer's patent-protected drugs rose 7 percent to $7.11 billion, 2 percent below Arfaei's estimate.

Higher sales of nerve-pain drug Lyrica helped offset disappointing sales of its Prevnar vaccine for pneumococcal infections.

In April, Pfizer terminated a $160 billion deal to acquire Irish drugmaker Allergan Plc (AGN.N: Quote) after the U.S. Treasury Department issued new rules restricting tax inversion transactions aimed at slashing taxes.   Continued...

The Pfizer logo is seen at their world headquarters in New York April 28, 2014.  REUTERS/Andrew Kelly/File photo